Article

By: Corporate Communications, Australian Trade Commission (Austrade)
Date: 15 December 2006

When most of us think agribusiness we think farms, livestock and rural, not high-tech, clinical and scientific. However it is ‘sunrise industries’ such as animal genetics, registered plant breeding rights and advanced geospatial ground and soil mapping that are changing the face of agribusiness and bringing in the export dollars.

“Australia’s agri-business sector is often underestimated. It extends from our world-leading irrigation systems and wine-technology, livestock genetics and management software, to the world’s best natural fibres,” says Rob Sutton, Team Leader Agribusiness & Consumer Products at Austrade.

Australian companies are already successfully exporting across the globe, with new opportunities opening up from the improved market access from Australia’s Free Trade Agreements (FTAs). Already the Australia-United States Free Trade Agreement (AUSFTA) and the Thailand-Australia Free Trade Agreement have improved conditions for several of Austrade’s clients.

This was the case for Dr. David Wood of Icarus Export Pty Ltd, whose company exports generic veterinary drugs, horse feeds and equine mineral supplement blocks. Thanks to the TAFTA, Dr Wood has seen the tariff on their products drop from 8–10 per cent to 5 per cent.

For some sectors of agribusiness, export is critical to the company’s survival as continued drought reduces turnover on the domestic market. Fjord Manufacturing, who produce high-grade measurement and agricultural material-handling devices, credit exporting with saving their business during the drought. They also recognise that the AUSFTA has encouraged America to look at Australia.

Innovation is a key attribute of this sector, one that has seen global positioning systems (GPS) applied to ploughing large fields. This is only one of a range of products designed by Rinex Technology, who specialise in farming technologies. The company has had a number of world firsts: a real-time mapping display system, a real-time yield mapping display system, a virtual road guidance display and the first autonomous boom section controller.

Genetic exports are another area on the rise.  Australian Elite Genetics exported to Mexico alone the tune of AUD$300,000 in June 2006. This interest continues with a recent visit to Australia by the Chilean Minister for Agriculture to learn more about the Australian wine, sheep and the genetics industries.

“The economic fundamentals for continuing success in Australian Agribusiness exports are undeniable. This sector has long term sustainable advantage, breadth and scale in a world of restricted landmass and rising populations. Combine natural competitive advantage with long-term industry research and you get an industry sector with productivity growth developing internationally competitive products and services,” said Rob Sutton.

For more information contact:
Rob Sutton,
Team Leader
Agribusiness & Consumer Products
Ph +61 2 9390 2031.